Name : ________________________

Date: _________________________
Accounting Notes
Chapter 12: Accounting for Depreciation and disposal of non-current assets
1. Explain what is meant by depreciation.
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2. Explain the purpose of depreciation. / Explain why Sukesh should be

providing for depreciation on his non-current assets.
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3. State FOUR reasons why assets depreciate.

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4. THREE methods of calculating depreciation:

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i.

ii.

b. ____________________________________________________________

c. ____________________________________________________________
5. a. Describe the straight line method of depreciation.
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b. State the circumstances when this method of depreciation may be used.

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6. a. Describe the reducing (diminishing) balance method of depreciation.

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b. State the circumstances when this method of depreciation may be used.

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7. a. Describe the revaluation method of depreciation.

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b. State the circumstances when this method of depreciation may be used.

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8. Explain why Herman Wagner revalued the loose tools at the end of each
financial year rather than using the straight line or reducing balance method of
depreciation.
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9. Double entry of depreciation.

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10. Steps of recording disposal of non-current assets.